Géoméga closes $2.9M IPO

GEOMEGA RESOURCES INC. CLOSED THE SECOND TRANCHE OF $201,250 OF ITS INITIAL PUBLIC OFFERING FOR A TOTAL OF $2,905,000

PRESS RELEASEFor immediate distribution

Montreal, October 8th, 2010 – Geomega Resources inc. (“GeoMegA”) is pleased to announce that it has closed yesterday the second tranche of its initial public offering (“IPO”) by prospectus for gross proceeds of $201,250. Industrial Alliance Securities inc. (“IAS”) was acting as agent in connection with the IPO, for which the prospectus was filed and receipted pursuant to the provisions of the Alberta, Ontario and Quebec Securities Acts. The common shares of GeoMegA commenced trading on TSX Venture Exchange under the symbol GMA on September 30, 2010.

At the closing of this first tranche of the IPO, GeoMegA issued 7,725,000 units at a price of $0.35, while 575,000 units were issued at the second tranche for a total of 8,300,000 units. Each unit consists of one common share and one-half warrant (“Warrant”). Each full Warrant entitles the holder to purchase, during a period of 18 months from the date of the closing, one common share at an exercise price of $0.55 per share.

In consideration for its services, IAS received a cash commission of $17,106 and 28,750 options for the second tranche of the IPO for a total of $186,828 in cash commission and 415,000 options. Each option will entitle IAS to purchase one common share at an exercise price of $0.35 per share, during a period of 18 months from the date of the closing.

“We are very pleased with the closing yesterday of the second tranche allowing us to reach the maximum of the subscription at $2,905,000 », commented Mr. Benoit Moreau, President and Chief Executive Officer.

Net proceeds from the IPO will be used for exploration of the Montviel, Pump Lake and Sydney properties.

The Montviel property, located 100 km of Lebel-sur-Quévillon in the Abitibi area of Quebec, encompasses the Montviel carbonatite complex which extends over an area of 32 km2. The exploration program will focus on the 3.1 km2 core of the carbonatite complex.

Upon closing of the second tranche of the IPO, GeoMegA has also granted 42,000 additional options to Directors, Officers and consultants for a total of 1,400,000 options. Each option will entitle the holder to purchase one common share at an exercise price of $0.35 per share, during a period of five years from the date of grant.

About Geomega Resources inc.GeoMegA is a Quebec based mineral exploration company focused in the exploration of carbonatites and other alkaline complexes for rare earth elements. GeoMegA’s current properties portfolio, located in the Abitibi and Upper Laurentians regions of Quebec, include:

Option to earn up to 75% interest in the Montviel and Pump Lake carbonatites;

100% interest in the Sydney property approximately 125 km north of the town of St-Michel-des-Saints;

100% interest in the Oriana property, 20 km west of the town of Chapais in the Abitibi area. The property is associated to the Dolodau carbonatite;

100% interest in the Émilie property, approximately 30 km east of the town of Lebel-sur-Quévillon in the Abitibi region. The property is associated to the Grevet carbonatite.

Currently, GeoMegA has 14,155,001 common shares outstanding.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautions Regarding Forward-Looking StatementsThis news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company’s filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward- looking statements, except as required by applicable securities laws.